Bharti Hexacom, a subsidiary of private sector telecom company Bharti Airtel, has set the price range of Rs 542-570 per share for the initial public offering (IPO). The company’s IPO will be open for subscription between April 3 and 5. Anchor (big) investors will be able to bid on April 2. This will be the first IPO of the new financial year 2024-25. According to language news, the IPO will be entirely in the form of an offer for sale (OFS) of 7.5 crore shares. This is equivalent to 15 per cent stake of existing shareholder Telecommunications Consultants India Ltd.
The amount will go to the shareholders
According to the news, however, the size of the OFS has been reduced from the earlier 10 crore shares. Since the IPO is entirely based on an OFS, the proceeds from the issue will go to the shareholders. The company will not get any amount from this. Bharti Hexacom has received ‘conclusion letter’ from the Securities and Exchange Board of India (SEBI) on March 11 for the IPO. Let us tell you, SEBI’s conclusion letter is necessary for any company to launch an IPO.
Bharti Airtel’s stake in Bharti Hexacom
Promoter Bharti Airtel holds 70 percent stake in Bharti Hexacom and the remaining 30 percent stake is with public sector Telecom Consultants India Limited. Bharti Hexacom is a telecom solutions provider, providing consumer mobile services, fixed line telephone and broadband services to customers in Rajasthan and North-East telecom circles in the country.
GMP of Bharti Hexacom IPO
According to market observers, unlisted shares of Bharti Hexacom Ltd are trading at Rs 50 higher than their issue price in the gray market. The gray market premium or GMP of Rs 50 means the gray market is expecting 8.77 per cent listing gain from the public issue. Let us tell you, GMP is based on market sentiments and keeps changing. The ‘grey market premium’ refers to the willingness of investors to pay more than the issue price.
Latest Business News